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| With a relatively unsophisticated economy that is agriculture- and natural resource-based, Laos has been affected by the crisis less than some neighboring countries. |
In the aftermath of the 1997 Asian crisis, Lao PDR grew steadily, on average by 6 percent a year in real terms. Laos also impressively lifted one-eighth of its population out of poverty between 1993 and 2003. Laos aims to graduate from a low-income country status by 2020. The current global financial crisis, however, will slow down the progress in poverty reduction, as well as the growth rate and reduce government ability to invest in health, education, and infrastructure, therefore lowering Laos' chances to fulfill this goal (for more, see the World Bank's East Asia & Pacific Update, a regional economic assessment released today).
One of the poorest countries in the world, Laos is a small land-locked country in Southeast Asia, bordering and trading with China, Vietnam, Thailand, and Cambodia. Laos has a relatively unsophisticated economy that is agriculture- and natural resource-based, although industry as share of GDP has been growing steadily in the last decade. The population of around 6 million people engages mostly in subsistence agriculture.
So far, Laos has been affected by the crisis less than other countries, because: